Processes & Procedures
Moto, Initiative, Efforts of Bank Behind Self Redevelopment
- Housing Societies prior to era of builders are formed, developed & erected by members by purchasing plots, appointing contractors & experts & arranging finance
- Mumbai Bank, being Apex & parent bank for co-operatives in Mumbai, has introduced a Self Redevelopment Policy in 2011 & revised in Aug 2017 with a view to give maximum benefits of redevelopment to members of co operative housing society
- The policy is to create a social impact in the city coupled with growth of business of Mumbai Bank
- Bank is taking special efforts by appealing Government/MHADA to introduce One Window concept for obtaining various permissions/NOC’s under one roof
- Bank is taking special efforts to introduce / insert special sections for self redevelopment in RERA act
- This presentation is to discuss the ideology of the product
- MHADA societies will get NOC for IOD from MHADA before paying premium on the basis of Comfort Letter from the bank
- Demolition of old structure and construction of new structure with better facilities, dimensions and amenities
- Redevelopment from resources of existing members with the support of financing agencies and professionals
- Redevelopment with better accountability and transparency
- Redevelopment without interference of any developer
Advantages of Self-Redevelopment
- Profits from the project shared among the existing members of the society
- More profits means extra corpus to be shared in the society
- Extra corpus means less burden of maintenance cost on existing members
- Existing members shall have more say in planning and shall be benefitted with more areas in certain cases
- Customization leads to better planning & utilization of space & dimensions
- Risk pertaining to Developer dependability is eliminated
- Existing members can get professional help in much organized way which helps completion of project in time and saves cost too
Self Development v/s Redevelopment
WHY MUMBAI BANK
Why Mumbai Bank?
- Apex financial entity in co-op credit structure
- Inherent capability of the Management towards resolving procedural delays
- Wide network of branches throughout Mumbai to reach out to interested prospects
- First bank to offer specially designed solutions for self redevelopment projects
- Providing proper framework, infrastructure & support system for societies to carry out the project with minimal hassles
MUMBAI BANK SELF REDEVELOPMENT POLICY
Mumbai Bank – Self Redevelopment Policy
- Loan approval limit 85 % of project cost or Rs. 50.00 Crores or more as per exposure norms of the bank
- Policy covers every aspect required for redevelopment e.g. TDR cost, experts fees, construction cost, shifting charges, rent , premiums & fees etc.
- At 12.5% p.a. interest with maximum cap of 7 years tenure with 2 years moratorium
- 100% consent from all members
- Conveyance/Deemed conveyance, property card, Index II Project will be monitored by Bank PMC & CA
- Escrow Mechanism : Outflow & Inflow will be routed through these accounts.
- Society plot & projected building will be mortgage to bank
- Scheme is for member Co-Op housing societies
- Society should have A & B Audit class
- Society should not be defaulter of any bank or government
- Property card, Index II & conveyance should be on societies name
- 100% consent of all members required for self redevelopment
- Title should be clear & Marketable
Various Documents / Permissions Required
- various documents / permissions required to obtain Commencement Certificate from MCGM. There are various stages between Commencement Certificate and Occupation Certificate which can be broadly named as:
- Pre design (Proposal stage)
- Statutory approval – IOD – C.C. stage
- Commencement Certificate above plinth
- Occupation / Completion stage
Pre Design (Proposal stage)
- Deemed Conveyance – Property must be transferred in the name of the Co – operative housing society including PR card.
- PR card in nos. and in words.
- Undertaking of preferably all members (minimum 70%) giving consent for redevelopment.
- Duly notarized and registered MOM of redevelopment proposal by Society.
- Appointment of PMC / Architect to advise and prepare preliminary proposal.
- Proposal duly prepared with respect to prevailing DCR & Government norms.
- DP remarks and related road and survey remarks (MCGM).
Statutory approval – IOD – C.C. stage
- Preparation of plans and complete detailed proposal and submission of the same with relevant documents by the Society i.e Society’s Architect.
- NOC from Chief Fire Officer
- NOC from Electromechanical department
- NOC from Traffic
- NOC from Superintendent of Garden.
- NOC from Pest Control.
- NOC from Assessment department
- NOC from Sewage Department
- NOC from Storm water drain department#
- NOC from Hydraulic – Water supply department.
- NOC from Ward Officer – Estate
- NOC from Road Department
- NOC from MTNL
- NOC / Remarks for concessions from Commissioner / Chief Engineer – DP
- NOC from High rise Committee (if building is above 70 mtrs.) In addition to the above, following NOC’s have to be procured from Government departments:
- NOC from Electric supply authority.
- NOC from Civil Aviation department.
- NOC from Environment department.
Occupation / Completion stage
- In addition to the same Rain Water Harvesting and Lift Inspector’s NOC is required.
- Along with the proposal, various charges / deposits etc. are payable towards scrutiny fee, premium for additional FSI etc. which is listed as below:
- Scrutiny fee
- Development charges
- Additional basement area premium
- Fungible FSI premium
- Staircase and Lift Lobby premium
- Premium for additional 33% area
- Capitation fee towards Fire NOC
Procedure for Loan Sanctioning
- Submission of proposal by the society with all required documents (mentioned in policy) to the bank
- After initial scrutiny by bank, proposal is send to Banks PMC, CA & Solicitor for technical financial viability
- After receiving opinion from experts of bank, appraisal note is put up for sanction to banks BOD
- After approval the same is communicated to society
- After complitation of documentation work, opening loan / escrow account at branch level
- Amount is disburse as per society’s demand on the basis of remarks from banks PMC
- Installment is work out for repayment as per disbursement & repayment period